by VDC staff
The University of Vermont Health Network announced Thursday that President and Chief Executive Officer Sunny Eappen, MD, MBA, will step down from his role this fall.
Steve Leffler, MD, president and chief operating officer of the University of Vermont Medical Center, will serve as interim chief executive officer of the health network beginning October 15. He will continue in his current leadership role at the medical center while assuming the system-wide responsibilities. Dr. Eappen will remain through December to assist with the transition.
The UVMMC press release announcing the decision makes no specific reference to the network’s ongoing battles over budgets, insurance reimbursement and spending with the state’s hospital regulator, the Green Mountain Care Board. However, a quote by the UVMMC trustee board chair did emphasize cost control.
“Our focus as volunteer board members is on ensuring the health system continues to evolve as a strong partner in reducing expenses, slowing the growth of hospital costs and delivering high-quality, sustainable care,” said Tom Golonka, chair of the UVM Health Network’s Board of Trustees. “We are fully committed to the work ahead under Steve’s capable leadership.”
Health care watchdogs in Vermont, including former Gov. James Douglas, have complained that UVMMC’s administrative overhead includes large leadership bonuses and at 71% of total operational costs far exceeds other hospitals. Recently, the Green Mountain Care Board issued a report criticizing UVMMC’s subsidizing of three small upstate New York hospitals.
Dr. Eappen, an anesthesiologist with more than 30 years of clinical, academic, and leadership experience, joined UVM Health Network in late 2022.
“It’s been my privilege to be part of this team, to see firsthand the way the people of this organization take care of our patients, our communities and each other,” Eappen said in a statement. “But I believe – based on everything that’s happening and all of the external pressures on our rural health system – that this organization needs to move forward in a different way. I’m committed to supporting Steve as a full partner in this transition.”
The network said the leadership change is part of broader efforts to streamline governance and improve efficiency while tackling rising health care costs. Dr. Leffler, an emergency physician by training, has been with UVM Medical Center for more than 30 years and has served as its president since 2020.
“I want to thank the board and the entire staff of UVM Health Network for having the confidence in me to lead in this pivotal time,” Leffler said. “This transitional period is going to continue to challenge us all, and I am committed to making sure this health system changes to meet the needs of our patients now and into the future.”
Jesse Bridges, chair of the UVM Medical Center’s Board of Trustees, said Leffler’s appointment comes at a critical time. “To live up to the promise of a unified health system, we must do everything we can to meet this moment and deliver the health care our communities depend on us to provide. We are grateful for his willingness to step into this dual role.”
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